Costly Seller Mistakes

In Real Estate, a Realtor with experience and many closed transactions costs the same as someone who is inexperienced. The sale of your home is the most important financial transaction you will be involved in. A contract for the sale of Real Estate is a legally binding document. An improperly written contract can cause the sale to fall through, or cost you money for repairs and inspections. It can even allow the purchaser to void the sale. You need an experienced Realtor who knows the ins and outs fully to explain the contract you are about to sign. You also want an honest Realtor, not one who is "buying" your listing!  And you want a Realtor who has a complete marketing strategy for your home, not just one who puts it in the computer and "waits" for it to sell.  The person you select can make it a satisfying and profitable experience or a nightmare. The choice is yours!

Basing asking price on needs or emotion rather than market value.

If your home is not priced competitively, buyers will reject it in favor of other larger homes for the same price. At the same time, the buyers who should be looking at your house will not see it because it is priced over their heads. The result is increased market time, and even when the price is eventually lowered, the buyers are wary because "nobody wants to buy a house that nobody else wants" Over pricing also adds to the carrying costs.

Waiting for the market to change for the better of selling a home could be a mistake without consulting a real estate professional to look at all market conditions including future development and interest rates.

For Sale By Owners sometimes get more activity than houses listed with a Realtor. Realtors bring only qualified buyers, and these will be fewer than if you open your doors to everyone who walks down the street. A qualified buyer is one who is ready, willing and able to buy your house. We find that most people who go looking at For Sale By Owners are just starting to think about moving. They may be good buyers some day. They don't want to bother an agent yet, so they call the By Owner ads to get a feel for what's available. They may have a house to sell first, or may need to save some more money, or even have credit problems. An agent will qualify a buyer and have them pre approved by a lender.

Often sellers believe that the first offer received will be the first of many. Sometimes the seller wants to hold out for a higher price. This can be especially true if the offer comes in right after the home goes on the market. Experience often shows that the first offer can be the best offer. Sometimes an experienced buyer is waiting in the wings for a house. They might have lost a bid on another house, know that your home is priced right, or just luck. The home is most saleable in the beginning of the marketing period while it is the "new house on the market". You may end up "settling" for less later!

No sign can mean no sale. A sign attracts these buyers. It is your 24 hour salesperson. It is often your best salesperson. Be careful. Some people will knock on your door. Insist they call your agent. Trying to negotiate yourself could cost you thousands of dollars. For Sale Signs also attract other agents, those who are too lazy to find their own homes for sale and those who lack ethics. If other agents approach you, send them packing no matter how many times they tell you they have a great buyer. These agents are the worst in the industry. If they will 'steal' other agents' clients they will almost certainly deceive you. Do not speak to the unethical agents who approach you from a For Sale Sign.

If you don't trust the agent, don't hire the agent!  A major ingredient in any relationship, business or personal, is trust. Before you choose your agent, ask many questions, check references, ask for a guarantee, test their negotiating skills and ask yourself a BIG question: Do I feel comfortable with this person handling the sale of my family home? If your answer is 'no', do not hire the agent. Once you decide on an agent, give the agent your trust and confidence. Do not interfere. Allow the agent to make decisions and get on with the job of finding the right buyer for your home. If, later, you lose your trust, you can dismiss the agent (if you received a guarantee). In the meantime, show your trust. The best agents are worthy of your trust. They won't let you down.

Advertising will rarely sell your home.  Too often home sellers make the mistake of demanding advertising for their homes. Buyers who want to buy in your area always visit your area before they buy. The area attracts them more than the advertising. It is a waste of time, money and energy to place advertisements in publications which reach thousands of people who will not buy in your area. Provided your agent’s office is open seven days, buyers for your area will be attracted to your agent. The best agents will then qualify the buyers and bring them to your home. That’s how most homes are sold.

Closed agents lose buyers. Make sure the agency you choose is open seven days. Many agents work 'nine to five' and close on Sunday. You need an agent who is available to buyers. Weekends are especially important. You never know when the perfect buyer will come along. A buyer will buy from the agent who is open. The best agents offer a 7 day service. They are always prepared to work on your behalf.

Sometimes circumstances change. A job might not have gone through, sickness, or a potential divorce situation which is reconciled after the listing is signed. In these cases, you deserve the right to cancel your listing agreement. Always protect yourself, by reserving the right to cancel the listing.

Many home improvements do not improve your price.

Be careful what you spend on major improvements to your home. What suits you may not suit every buyer. A good example is a swimming pool. It may cost you $25,000. It is worth nothing to buyers who do not want a pool. Waiting for a buyer with the same taste as you may take years. The main purpose of home improvements is to improve your enjoyment, not to improve your price. You rarely get back more than half the cost of your improvements when you sell. Do not spend large sums on home improvements immediately prior to selling your home.

Sellers often unwittingly spend thousands of dollars doing the wrong upgrades to their homes prior to attempting to sell in the mistaken belief that they will recoup this cost. If you are upgrading your home for your personal enjoyment - fine. But if you are thinking of selling, you should be aware that only certain upgrades are cost effective. Consult with us BEFORE committing to upgrading your home.

Dull homes get dull prices.

Do not confuse improvements with presentation. Make your home sparkle and your price will shine. Pay attention to little things which create a big impression - the front garden and the first appearance of your home. Stand back and look at what buyers will see when they arrive. Cleanliness is vital. One of the most important and most overlooked aspects of selling a home is its smell. Pleasant scents create pleasant moods. A home which sparkles always sells for a higher price.

A property that is not clean or well maintained is a red flag for the buyer. Buyers look for homes, not houses. They buy the home that they would like to live in. An owner who doesn't make necessary repairs, who doesn't spruce up the house, and fails to keep it clean, is a red flag for the buyer. Buyers are poor judges of the cost of repairs, and always build in a large margin for error when offering on such a property.

Open Listing

The more agents you employ the lower your price becomes.

Cheap agents get cheap prices.

Be careful choosing an agent based purely on their fees. If agents give their own money away what do you think they will do with your money?! Better to pay an extra one percent for a selling fee than to receive ten percent less on your selling price. Good negotiators rarely give big discounts on their fees. If they get you the best price, they are worth a fair fee. Choose an agent who offers a guarantee. If you are not happy, you pay nothing. But remember, ALL fees can be negotiated down, especially if the agent is trying to negotiate your price down.

Be very careful that you do not choose the agent who tells you the biggest lie about the sale price of your property. This is called "buying your business". Also, be wary of agents who try to talk you into auction by telling you stories of incredible prices. This is a common trick. If you choose an agent based on the selling price they quote you, you may be badly disappointed. If you suspect that an agent is attempting to "buy" your business with a high price estimate, insist they give you their estimate in writing. Insist, also, that they charge you nothing if they sell for less than the price they estimated. This will identify the agents who are enticing you with false price promises.